Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
Excise and Specialty Tax Directorate
5th floor, Tower A, Place de Ville
320 Queen Street
Ottawa ON K1A 0L5
[Client]
[Client Address]
Case Number: 9000294
Business Number: [Client Business Number]
Attention: [Client]
Date: October 17, 2024
Subject: Request for Interpretation of section 64 of the Excise Tax Act
Thank you for your letters dated December 4, 2023 and January 16, 2024 regarding the application of section 64 of the Excise Tax Act (ETA). We apologize for the delay in responding to your letter.
All legislative references are to the ETA unless otherwise stated.
Interpretation requested
You would like to know whether an importer could be granted a wholesaler’s license under section 64.
It is your understanding that the CRA has discretionary authority to issue a wholesaler’s license under section 64 and not under section 55.
Interpretation given
Pursuant to Part III of the ETA, the FET is payable on Schedule I goods that are manufactured in or imported into Canada, subject to exemptions under subsections 23(6) to 23(8). Subsection 23(6), in particular, provides relief from the FET on goods that are imported by a licensed wholesaler for the purposes of resale.
For the purposes of Part III of the ETA, section 22 defines the term “licensed wholesaler” as having “the meaning assigned to that expression by section 42.” Section 42 defines “licensed wholesaler” as a wholesaler licensed under Part VI of the ETA while subsection 55(1) provides the authority to grant wholesalers licenses for Part VI of the ETA.
Whereas section 64 provides the legislative basis for mandatory manufacturer’s licensing for the purposes of remitting tax to the CRA. This is in line with other tax or charge programs that the CRA administers where a taxpayer or charge payer is required to be licenced or registered with the CRA to ensure compliance with the tax or charge program. Accordingly, the CRA will not depart from this administration.
Interpretation requires adherence to the distinct definitions and framework established within each section of the statute, unless explicitly stated otherwise within the legislative text.
Please note that amendments to the tax legislation remain the responsibility of the Department of Finance Canada. As well, the administration of FET on importations falls under the purview of the Canada Border Services Agency.
Per the CRA publication “Requesting an Excise and Specialty Tax Ruling or Interpretation”: “An interpretation is a written statement that sets out our view of how legislation applies to a generic fact situation. An interpretation is also provided when there is a clearly defined fact situation that relates to legislative provisions that have not yet become law. As such, we are not bound by the interpretation that we issue.”
If you require clarification with respect to any of the issues discussed in this letter, please call William Ferguson directly at 343-551-2259.
Yours truly,
Yannic Laroche
Manager, Excise Taxes and Other Levies
Excise and Specialty Tax Directorate
Legislative Policy and Regulatory Affairs Branch
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